Virtual accounts are a compelling alternative for companies to simplify tracking amount receivables! Most companies are looking to stay in control of business cash flow. And Open’s virtual accounts enable businesses to manage expenses smartly. By overviewing the entire cash flow and cash positioning from a single dashboard, businesses can keep tabs on multiple transactions together.

While companies use various applications to reconcile payments, they can’t help justify the everyday expenses.

Here’s where virtual accounts step in to ease things up!

Not having the means to reconcile every payment leaves businesses in a vicious loop. And when the time spent on reconciliation exceeds the deadline, it, in turn, affects the daily sales outstanding (DSO) — eventually causing a decrease in productivity. But virtual accounts can put an end to this never-ending cycle.

Go through the top 11 most asked questions about virtual accounts to know why virtual accounts are your best bet to reconcile payments smartly.

1. What is a virtual account?

A virtual account is a non-physical/ online bank account created virtually. By adding just a few basic details like the name, mobile number, and email address of the customer, you can set up a virtual account for your clients/ customers and reconcile inward payments seamlessly.

2. What are virtual account numbers (VANs)?

To track who has made the payment and when is often chaotic for businesses! 

Virtual account numbers or VANs are system-generated, unique account numbers that help streamline the process. Here’s where Open Virtual Accounts shine. By assigning a virtual account number/ UPI IDs to a customer, businesses can accept payments via various modes and auto-reconcile payments at once.

3. How is a virtual account different from a regular bank account?

A virtual account is a non-physical bank account, which essentially entails that businesses don’t have to visit a branch or wait in line to create an account. And all the transactions can be tracked digitally via the virtual account — reducing manual dependencies. 

All you have to do is create a virtual account. The unique virtual account number helps track the payment source and the payee (customer) right away.

Next up, the big question!

4. What are the benefits of using a virtual account over a physical/ regular one?

While virtual accounts have functions similar to a physical one, it offers a lot more flexibility. A virtual account is more efficient when it comes to reconciling payments from multiple customers.

Most companies have a tough time tracking incoming payments against the order numbers while using a physical account. And given that they require high maintenance and operating cost, virtual ones are a low-maintenance and cost-effective option. And managing multiple virtual accounts and reconciling payments is far easier than tracking them manually via a physical one.

So compared to the physical account that uses up extended bandwidth for manual tracking, virtual accounts take significantly less time to track cash flow.

5. How to collect payments via Open’s virtual accounts?

As per RBIs Payment Aggregator Regulations, businesses can accept payments via debit/ credit, net banking, or UPI. After setting up the virtual account with Open, the customer can link the existing bank account to it. And make payments through NEFT/ RTGS/ IMPS or through other modes of payments. Once the payment is processed and hits the company account, the business gets notified of the transaction right away. 

Businesses can also generate UPI QR codes and payment links for any offline transactions and share them with customers. 

6. Can I collect recurring payments via virtual accounts? 

Yes! Businesses can schedule recurring payments against the virtual account number assigned to customers. So there’s nothing to worry about, and you can get paid in time. 

7. Do virtual accounts need KYC completion? 

As mentioned above, the recent RBI guidelines have a few mandates. One of which is to complete KYC to help businesses verify customer profiles. The customer can then transfer funds from the virtual account with an added layer of authentication and protection against any fraud for remote payments. 

8. How are virtual accounts helpful for businesses? 

Virtual accounts come with a lot of benefits for both businesses and customers. Creating a virtual account on Open means cutting down on using multiple portals to do banking, managing expenses, collecting and reconciling payments, and more.

They can also track receivables against unique virtual account numbers of customers without any unnecessary back and forth. It also helps customers track every payment made against vendors/ companies from a single dashboard.

9. What kind of companies can benefit from using virtual accounts?

Be it educational institutes, lending companies, B2B e-distributors, retailers, or others! Virtual cards enable businesses across sectors to track and reconcile payments promptly. 

10. How can Open’s virtual accounts help your business? 

Open’s virtual account reduces the to and fro between businesses and customers while streamlining payments. In addition, Open gives a complete overview of business spends/ transactions and makes it easy to reconcile payments through its user-friendly platform. It further makes it easier for customers to make payments using the mode of payment most suitable for them. Read all about how you can collect and track payments like a pro using Open.

11. How to create a virtual account with Open?

You can get a fully integrated virtual account that simplifies banking, accounting, payments, expense management in one place within a few clicks. 

  • Visit www.open.money to log in or sign up, and create a virtual account
  • Complete KYC to start collecting payments from customers
  • Collect payments via multiple virtual accounts in one place
  • Reconcile payments on the go and simplify settlements

The digital payment revolution has refined business and cash management for companies across the globe. Enabling businesses’ to use Open’s virtual accounts will empower small businesses throughout the country to re-think the way they collect payments, as virtual accounts help streamline the entire process and simplify fund management. And further, empower companies to be more inclusive by relying on a single dashboard to run payments for business.

So here’s your cue to start exploring virtual accounts for business and move to the better side.

 

Related Articles –

How to collect & track payments like a pro with Virtual Account APIs

All you need to know about Open – banking that gets your business

How Open simplifies business finance for e-commerce startups?

Simplifying business finances & accounting with Open

11 Startup Banking Challenges that Entrepreneurs Fret Over

Why an online bank account is essential for SMEs & Startups

 

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    Rochel Lewis

    Content Marketer at Open with a knack for all things writing!